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Charging interest on
overdue invoices UK.

Under UK law, you are entitled to charge 8% interest plus the Bank of England base rate on late commercial payments.

Late Payment Calculator

UK Statutory Interest (Sync: 3.75% BoE)

How it works

1. Statutory Interest

The current rate is 8% plus the Bank of England base rate (approx. 3.75%). This is calculated daily.

2. Compensation Fees

You can charge a fixed fee for each overdue invoice:

  • Debt up to £999.99£40
  • Debt £1,000 - £9,999.99£70
  • Debt £10,000+£100

3. Reasonable Costs

If debt recovery costs you more than the fixed fee (e.g. using a collection agency), you can claim the difference.

100% compliant with Late Payment of Commercial Debts Act 1998

How is statutory interest calculated in the UK?

UK statutory interest is set at 8% plus the Bank of England base rate. For late payments, this interest is calculated as a simple daily rate. Businesses can also claim a fixed sum of compensation (£40, £70, or £100) and reasonable recovery costs for any overdue commercial debt.